Kabel Deutschland's $1 bln IPO covered: sources

LONDON (Reuters) - Top German cable television firm Kabel Deutschland's KABLD.UL $1 billion initial public offering has been covered, said sources familiar with the deal, a sign of healthy investor appetite.

The KDG offering, the biggest in Germany in two years, kick started bookbuilding last Thursday and was covered Tuesday morning, including a greenshoe, the people said.

“This is a positive sign,” said one of the sources.

The offering has won support from local investors in Germany, a key for a successful IPO these days, said another source.

U.S. private equity firm Providence Equity Partners, Ontario Teachers’ Pension Plan and the management of KDG are aiming to raise as much as 869.4 million euros ($1.2 billion) via the IPO.

They are selling as much as 34.5 million existing shares, including a 4.5 million-share greenshoe option, at between 21.50 euros and 25.50 euros each.

Although the sources gave no information at what price investors have indicated their interest, the fact that the deal was covered, including a greenshoe, on the fourth day in a bookbuilding process, is something for the bookrunners to find comfort in.

The message also came hot on the heels of the launch of Brenntag Holding GmbH’s $1 billion IPO, breathing life into a fragile recovery of Europe’s IPO market.

Deutsche Bank DBKGn.DE, Morgan Stanley MS.N, J.P. Morgan JPM.N and UBS UBSN.VX are KDG deal's bookrunners. While Brenntag is arranged by Deutsch Bank, Goldman Sachs, Bank of America Merrill Lynch BAC.N and J.P. Morgan.

($1=.7318 Euro)

Reporting by Daisy Ku; Editing by Andrew Callus